Confidence of business sector in the Philippine economy increased in 2nd quarter of 2016

admin • May 27, 2016 • 3021

From 41.9 percent, the confidence index or business outlook rose to 48.7 percent based on the latest survey of Bangko Sentral ng Pilipinas.

It means, the trust of businessmen and company owners in the Philippine economy has increased.

The survey was conducted nationwide with 1,482 business respondents from April 1 to May 17, 2016.

According to the report, among the factors that resulted in increased confidence are the May 9 election-related spending, sustained increase in orders and projects, anticipated increase in demand during summer, influx of tourists, low inflation, stable interest rates and sustained foreign investment inflows.

The deputy governor of the Bangko Sentral ng Pilipinas Diwa Guinigundo said, the result of the elections that secured the huge win of Rodrigo Duterte as incoming president, might have also affected the outcome of the survey.

“Business respondents are prepared to see how the new administration, the new political leadership will navigate the economic and financial waters and we hope that this is going to continue,” Guinigundo said.

The results of the survey also show the confidence of the business sector in the eight-point economic agenda of Duterte for the country.

“They have seen the eight-point program, and the first point in that eight-point program is precisely to continue with macroeconomic policies and to make sure that tax reforms are pursued. So, I think that should provide optimism to our business respondents,” Guinigundo further added.

The confidence of the business sector in the country’s economy is a good indication.

It translates to business expansions, economic growth, and more job opportunities for the people.

Even though the overall business confidence index rose in the second quarter of 2016, Bangko Sentral ng Pilipinas said, this may change a bit in the third quarter of the year because of the rainy season, enrollment period and the higher price of oil in the market.

Get a sack of cabbages for a sack of potatoes. That was how trade worked during the early civilizations. Before money existed people used barter to trade.

Because of the severe economic turmoil created by the coronavirus disease (COVID-19) pandemic, several business owners and employees have lost their livelihood and had to look for other means to survive.

Residents in Iloilo City have resorted to online bartering to cope with the economic effects of the pandemic.

The Iloilo Barter Community (IBACO) currently has over 44,000 members. IBACO is bringing back barter and is trading various goods including food, pre-loved items, and services in exchange for another product.

Money is not needed. One can barter gadgets for fruits, clothing, or any other product that the trader would prefer having.

According to IBAC founders Charity Delmo and Hector Angeles, they created the group in order to help fellow business owners cope with the economic effects of the pandemic.

“While it’s a fun community, we found out that there are a lot of members who are also business members who lost their business, and people who lost their jobs,” Delmo said.

In order to trade, an individual must post the items they want to barter, which includes the description, worth and what items they want to exchange it with.

Members will then be able place their offer through the comments section. The page does not allow direct or private messages until the deal is closed.

MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) on Wednesday said it has relaxed the requirement for the presentation of a valid identification document (ID) for customer boarding and select transactions during the enhanced community quarantine period in Luzon.

In a statement, the BSP said this is to facilitate the delivery of welfare funds to identified beneficiaries who have no available valid IDs or transactional account with any financial institutions.

“The Bangko Sentral relaxed the Know Your Customer (KYC) requirements since the accounts involved are considered as low risk,” it said.

The policy is effective until June 30, 2020, the central bank said.

Under the relaxed KYC requirements, the BSP said it has introduced the following control measures to guard against money laundering and terrorism financing risks:

the transactions in the account shall not exceed P50,000.00 per day;

qualified customers are those who reside or conduct business in the area which has been declared to be under ECQ/CQ;

customers are required to certify that he/she has no valid ID; and

the customer’s account activities shall be subject to ongoing monitoring.

“Financial institutions are expected to obtain the required minimum information from the customer and perform risk-based customer due diligence,” the central bank said.

“The relaxed KYC requirements apply to both over the counter and electronic or online transactions,” it added.

The BSP said the move is part of its initiatives to ensure that Filipinos have continuous access to basic government and financial services amid the COVID-19 situation.

MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) on Saturday urged the public to use e-banking and digital payment services amid the threat of novel coronavirus disease (COVID-19) in the country.

In a statement, the BSP said the use of digital banking enables the public to carry out needed financial transactions safely amid this public health crisis.

The central bank also assured that the banking industry will continue providing essential services to its clients, and that banks have activated their business continuity plans that aim to ensure deposit-taking, ATM withdrawals, check clearing, and other banking activities.

“The coronavirus outbreak is a public health crisis, not a financial crisis. Depositors are advised to remain calm as the banking system has the ability to serve all withdrawals within a reasonable period,” it said.

The Bangko Sentral ng Pilipinas (#BSP) assures the public that the banking industry shall continue providing essential services to its clients pic.twitter.com/Hm1ZX3F6Mb

The BSP also said it is closely coordinating with the Bankers Association of the Philippines, Chamber of Thrift Banks and Rural Bankers Association of the Philippines for the industry’s current cash requirements.

“In addition, payment settlements continue to be performed through PhilPass,” the central bank said.

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